ANC Today

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Volume 3, No. 12, 28 March-3 April 2003

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THIS WEEK:

* Letter from the President: Will there be a just and lasting peace?
* Economic empowerment: Redressing past wrongs while securing the future
* Parliament to the People: Building an enduring democracy in South Africa

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PRESIDENT'S LETTER

Will there be a just and lasting peace?

The war in Iraq has entered its second week. It is not known when it will end.
Neither can anybody tell what the political, economic and social cost of
reconstruction will be. Ultimately, answers will have to be found about its
impact on the ordering of relations among the world community of nations.

The world faced similar challenges as the Second World War raged on. We,
together with the majority of our people, knew then that whatever the answers to
these questions, our freedom had to be an inalienable part of the new world
order. Responding to the 1941 Atlantic Charter, in 1943 our leadership adopted
the historic document, Africans' Claims, the predecessor to the Freedom Charter.

Among others, the Africans' Claims said: "The soldiers of all races, Europeans,
Americans, Asiatics and Africans have won their claim and the claims of their
peoples to the four freedoms by having taken part in this war which can be
converted into a war for human freedom if the settlement at the Peace Table is
based on human justice, fair play and equality of opportunity for all races,
colours and classes."

In part, our leaders were inspired by the paragraph in the Atlantic Charter,
published jointly by US President Roosevelt and UK Prime Minister Churchill,
which read: "Third, (we) respect the right of all peoples to choose the form of
government under which they will live; and (we) wish to see sovereign rights and
self government restored to those who have been forcibly deprived of them."

The British Prime Minister, Winston Churchill, was one of the great leaders of
the Alliance against Nazism. Necessarily, even as the great armies faced one
another in a titanic contest in various parts of the world, he began providing
answers to the important questions of the day relating to the post-war world
order. As many of us ponder the answers to the many questions to which the world
will have to respond after the Iraq war, we might learn something from the
rigorous precision of the mind of Winston Churchill.

Speaking at Westminster College, Fulton, Missouri, USA, on March 5, 1946,
Churchill said: "When American military men approach some serious situation they
are wont to write at the head of their directive the words 'over-all strategic
concept.' There is wisdom in this, as it leads to clarity of thought. What then
is the over-all strategic concept which we should inscribe today? It is nothing
less than the safety and welfare, the freedom and progress, of all the homes and
families of all the men and women in all the lands.

"To give security to these countless homes, they must be shielded from the two
giant marauders, war and tyranny.When the designs of wicked men or the
aggressive urge of mighty States dissolve over large areas the frame of
civilised society, humble folk are confronted with difficulties with which they
cannot cope. For them all is distorted, all is broken, even ground to pulp.

"When I stand here this quiet afternoon, I shudder to visualise what is actually
happening to millions now and what is going to happen in this period when famine
stalks the earth. None can compute what has been called 'the unestimated sum of
human pain'. "

He then went on to say: "A world organisation has already been erected for the
prime purpose of preventing war, UNO, the successor of the League of Nations,
with the decisive addition of the United States and all that that means, is
already at work. We must make sure that its work is fruitful, that it is a
reality and not a sham, that it is a force for action, and not merely a frothing
of words, that it is a true temple of peace in which the shields of many nations
can some day be hung up, and not merely a cockpit in a Tower of Babel.

"I have, however, a definite and practical proposal to make for action. Courts
and magistrates may be set up but they cannot function without sheriffs and
constables. The United Nations Organisation must immediately begin to be
equipped with an international armed force. In such a matter we can only go step
by step, but we must begin now."

In the same speech, he drew attention to the global responsibilities of the
United States in the following words: "The United States stands at this time at
the pinnacle of world power. It is a solemn moment for the American Democracy.
For with primacy in power is also joined an awe inspiring accountability to the
future. If you look around you, you must feel not only the sense of duty done
but also you must feel anxiety lest you fall below the level of achievement.
Opportunity is here now, clear and shining for both our countries. To reject it
or ignore it or fritter it away will bring upon us all the long reproaches of
the after-time. It is necessary that constancy of mind, persistency of purpose,
and the grand simplicity of decision shall guide and rule the conduct of the
English-speaking peoples in peace as they did in war. We must, and I believe we
shall, prove ourselves equal to this severe requirement."

Winston Churchill had spoken of the role of the United States in 1943, when he
received an honorary degree at Harvard University, on September 6. On that
occasion he said: "The price of greatness is responsibility. If the people of
the United States had continued in a mediocre station, struggling with the
wilderness, absorbed in their own affairs, and a factor of no consequence in the
movement of the world, they might have remained forgotten and undisturbed beyond
their protecting oceans: but one cannot rise to be in many ways the leading
community in the civilised world without being involved in its problems, without
being convulsed by its agonies and inspired by its causes.

"If this has been proved in the past, as it has been, it will become
indisputable in the future. The people of the United States cannot escape world
responsibility. Although we live in a period so tumultuous that little can be
predicted, we may be quite sure that this process will be intensified with every
forward step the United States make in wealth and in power. Not only are the
responsibilities of this great Republic growing, but the world over which they
range is itself contracting in relation to our powers of locomotion at a
positively alarming rate.

"We have learned to fly. What prodigious changes are involved in that new
accomplishment!..Where, then, are those broad oceans, those vast staring
deserts? They are shrinking beneath our very eyes. Even elderly Parliamentarians
like myself are forced to acquire a high degree of mobility."

In the same speech, he spoke about the unity and role of the English-speaking
world, to which he again referred in his Fulton speech. At Harvard, he said: "We
(the English-speaking world) do not war primarily with races as such. Tyranny is
our foe, whatever trappings or disguise it wears, whatever language it speaks,
be it external or internal, we must forever be on our guard, ever mobilised,
ever vigilant, always ready to spring at its throat. In all this, we march
together. Not only do we march and strive shoulder to shoulder at this moment
under the fire of the enemy on the fields of war or in the air, but also in
those realms of thought which are consecrated to the rights and the dignity of
man...

"Now in my opinion it would be a most foolish and improvident act on the part of
our two Governments, or either of them, to break up this smooth-running and
immensely powerful machinery the moment the war is over. For our own safety, as
well as for the security of the rest of the world, we are bound to keep it
working and in running order after the war - probably for a good many years.

"We must not let go of the securities we have found necessary to preserve our
lives and liberties until we are quite sure we have something else to put in
their place which will give us an equally solid guarantee. The great Bismarck -
for there were once great men in Germany - is said to have observed towards the
close of his life that the most potent factor in human society at the end of the
nineteenth century was the fact that the British and American peoples spoke the
same language. That was a pregnant saying. Certainly it has enabled us to wage
war together with an intimacy and harmony never before achieved among allies...

"But I am here to tell you that, whatever form your system of world security may
take, however the nations are grouped and ranged, whatever derogations are made
from national sovereignty for the sake of the larger synthesis, nothing will
work soundly or for long without the united effort of the British and American
peoples. If we are together nothing is impossible. If we are divided all will
fail."

When he spoke at the University of Zurich, Switzerland, on September 19, 1946,
he conveyed his vision of Europe, saying: "We must build a kind of United States
of Europe.If Europe is to be saved from infinite misery, and indeed from final
doom, there must be this act of faith in the European family, this act of
oblivion against all crimes and follies of the past.

"I am now going to say something that will astonish you. The first step in the
re-creation of the European family must be a partnership between France and
Germany. In this way only can France recover the moral and cultural leadership
of Europe. There can be no revival of Europe without a spiritually great France
and a spiritually great Germany. The structure of the United States of Europe
will be such as to make the material strength of a single State less important.
Small nations will count as much as large ones and gain their honour by a
contribution to the common cause.

"I now sum up the propositions which are before you. Our constant aim must be to
build and fortify the United Nations Organisation. Under and within that world
concept we must re-create the European family in a regional structure called, it
may be, the United States of Europe, and the first practical step will be to
form a Council of Europe.

"In this urgent work France and Germany must take the lead together. Great
Britain, the British Commonwealth of Nations, mighty America - and I trust,
Soviet Russia, for then indeed all would be well - must be the friends and
sponsors of the new Europe and must champion its right to live. Therefore I say
to you "Let Europe arise!"

In his speech at Fulton, Churchill had also said: "From Stettin in the Baltic to
Trieste in the Adriatic, an iron curtain has descended across the Continent.
Behind that line lie all the capitals of the ancient states of Central and
Eastern Europe.All are subject in one form or another, not only to Soviet
influence but to a very high and, in many cases, increasing measure of control
from Moscow.Whatever conclusions may be drawn from these facts.this is certainly
not the Liberated Europe we fought to build up. Nor is it one that contains the
essentials of permanent peace."

History will judge the extent to which this grand Churchillian vision of the
world after the Second World War was realised. It will make a determination
about how well that vision served the objectives Churchill stated at Fulton.
Whatever its judgements and determinations, the one matter history will not
contest is the acute appreciation of the warrior-statesman, of the centrality of
power in the ordering of relations among the nations.

When the Cold War came to end, with the collapse of the Soviet Union and its
Warsaw Pact allies in Europe, many said that we were entering a new world of
peace, the permanent relaxation of global tension, and the demise of power
blocs. All humanity would benefit from a peace dividend that would open the way
to the eradication of the great scourges of poverty and underdevelopment, and
freedom from the unestimated sum of human pain of which Churchill spoke at
Fulton.

The war in Iraq emphasises the fact that this dream remains as yet a mere dream.
It tells us that all of us must try, as Churchill did, to elaborate the overall
strategic concept that he tried to formulate. As we do this, there are many
questions that we will have to answer.

What will be the fate of the United Nations and the global governance of a world
that, because of the technological advances of which Churchill spoke, is no
longer divided by broad oceans and vast staring deserts!

What global responsibilities attend those who have a preponderance of power! Who
will determine those responsibilities, and who will provide the checks and
balances in the face of that preponderant power!

How shall we understand the accountability of the powerful to the nations, of
which Churchill spoke, which is underpinned by the urge to avoid the long
reproaches of the after-time!

How will the new world be constructed such that, as Churchill said of the new
Europe he foresaw, small nations will count as much as large ones and gain their
honour by a contribution to the common cause!

What will the common cause be! Who shall determine its content! How!

Will it include the elimination of the unestimated sum of human pain that is the
lot of billions of people across the globe, including our own! Will the
Africans' Claims be part of the agenda of the world after Iraq!

What meaning will be attached to the concepts of sovereign rights and self
government of peoples proclaimed in the Atlantic Charter! Who will tell us all
of the meaning!

Who will ask the questions! Who will provide the answers!

What will the forum be, that will not merely be a cockpit in a Tower of Babel, a
seat for the frothing of words!

Will there be a just and lasting peace in the world, at last!

Thabo Mbeki

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ECONOMIC EMPOWERMENT

Redressing past wrongs while securing the future

The strategy for broad-based black economic empowerment, which was released by
government this week, aims not only to redress past racial imbalances, but to be
a powerful tool for building the economy, accelerating growth and stimulating
job creation.

The strategy follows announcements by President Thabo Mbeki in his State of the
Nation address in February, and is the result of a comprehensive policy
development and consultation process. It is founded on the basic policy
positions outlined in the Reconstruction and Development Programme (RDP), which
was adopted in 1994, and draws on the work of the Black Economic Empowerment
Commission and contributions from the President's Black Business and Big
Business working groups.

The strategy begins with a policy statement by government on black economic
empowerment, outlining its objectives and the key principles which guide its
approach. It outlines the policy instruments government plans to use to achieve
empowerment. These include the introduction of a draft bill, which will be
tabled in Parliament within the next few weeks for public discussion and
comment.

In creating an "enabling framework" for the promotion of black economic
empowerment (BEE), the draft law will allow the Minister of Trade and Industry
to issue guidelines and codes of good practice on black economic empowerment. It
will also provide for the establishment of a BEE Advisory Council to advise the
President on the implementation of BEE.

Government strategy also includes the formalisation of partnerships with the
private sector, including the use of industry charters - similar to the recent
Mining Charter - and even enterprise charters. It will include the use of a
'balanced scorecard' approach for measuring empowerment progress. New financial
support measures are introduced and existing financial support is better aligned
with the strategy.

Objectives and principles

For the strategy to be effective, government has tried to find a balance between
a very broad definition of BEE and an overly narrow one. It defines BEE as "an
integrated and coherent socio-economic process that directly contributes to the
economic transformation of South Africa and brings about significant increases
in the numbers of black people that manage, own and control the country's
economy, as well as significant decreases in income inequalities".

The strategy aims to substantially increase the number of black South Africans
who own and control existing and new businesses. Particular attention will be
paid to businesses in priority sectors like agriculture, mining, clothing and
textiles, cars and components, information technology, tourism and cultural
industries.

It aims to increase the numbers of black enterprises (more than 50 percent black
ownership), black-empowered enterprises (more than 25 percent black ownership)
and black-engendered enterprises (more than 25 percent black women ownership).
There should also be a significant increase in the number of black people in
executive and senior management positions.

The strategy also aims to increase the proportion of community and other broad-
based enterprises, such as those owned by unions, employees trusts or other
collectives, as well as promoting an increase in the number of co-operatives.

While accelerating economic growth, the strategy seeks to increase the income
levels of black people while reducing income inequalities between and within
race groups.

It places particular emphasis on increased ownership of land and other
productive assets, improved access to infrastructure, increased acquisition of
skills, and increased participation in productive economic activities in under-
developed areas, including the 13 rural and urban nodal areas identified by
government.

These objectives will be achieved by ensuring that BEE is broad-based and
inclusive, reaching and benefiting the broadest range of South Africans
possible. It should reach all industries and involve all enterprises. It needs
to be part of a drive to improve standards of corporate governance and economic
transparency. And, importantly, it needs to be part of the country' s growth
strategy. "No economy can grow by excluding any part of its people and an
economy that is not growing cannot integrate all of its citizens in a meaningful
way," the strategy notes.

Policy instruments

To measure progress by sectors and enterprises in achieving BEE, government will
introduce a 'balanced scorecard'. This will three core elements:

* ownership and control of enterprises and assets, * human resource development
and employment equity, * preferential procurement and enterprise development.

The scorecard will be issued as a Code of Good Practice in terms of the
forthcoming BEE law. Government will use the scorecard when it grants licences
or concessions, sells any state assets or enterprises, enters into a public-
private partnership, or engages in any economic activity.

Government will also use the sale of stakes in state-owned enterprises to
encourage BEE, by, among other things, offering discounted shares in any initial
public offerings (as has recently happened with Telkom) or ensuring worker or
community ownership and management of state-owned enterprises.

Government and state-owned enterprises will promote BEE through preferential
procurement to increase the proportion of black-owned and black-empowered
companies which provide products and services to government.

The envisaged BEE Advisory Council will review progress in achieving
empowerment, and provide advice on new programmes and instruments, sector and
enterprise charters, and codes of practice and guidelines. The council will
comprise of 19 members, appointed by the President, who will hold office for a
three-year term.

Partnerships and charters

The strategy recognises that BEE will not be effective unless government and the
private sector work together to achieve it. Government will therefore actively
seek innovative structured partnerships with the private sector, built around
the specific circumstances of different sectors and enterprises.

Sector and enterprise-based charters are one possible form of such a
partnership, although it is not expected that every sector or enterprise will
develop empowerment charters. These charters would include the vision of the
sector or enterprise for achieving BEE targets and timetables; the specific
mechanisms to be used to achieve these targets; an assessment of the financing
need to fund black economic empowerment transactions; and the institutional and
management mechanisms that will coordinate, facilitate, monitor and evaluate the
implementation of the charter.

Government will "strongly encourage" sectors and companies which regularly
engage with government, or are regulated by government, to develop charters. It
will also seek to conclude enterprise charters with key companies in priority
sectors to inject momentum into the empowerment process.

Finance

The success of any programme of black economic empowerment requires measures to
ensure that black South Africans have broadened access to finance. Government
has therefore made a commitment to set aside finance to support the empowerment
process, and to improve the effectiveness and coordination of existing financing
mechanisms.

The National Empowerment Fund, which was set up in 1998 to enable historically
disadvantaged South Africans to hold shares in state-owned and private
enterprises, will have its mandate and functioning reviewed to align it more
closely with the BEE strategy. Grants and incentives currently provided by the
Department of Trade and Industry (DTI) will be coordinated with other programmes
to maximise their contribution to BEE. New schemes are being considered to
support supplier development, micro-enterprise development, skills development
and the acquisition of new technology.

Lending to small and medium enterprises (SMEs) will be prioritised through the
Khula agency. A distinct approach will now be used for micro-enterprises.
Efforts to ensure BEE in new project development will be spearheaded by public
institutions like the Industrial Development Corporation (IDC), which deals
extensively with SME projects and already has a specific BEE approach.

Government will facilitate specific venture capital projects in particular
sectors. It will also provide inducements to the private sector to finance
empowerment ventures, as has been done through the Mining Charter.

The DTI has invited public comments on the broad-based BEE strategy, and has
undertaken to continue to seek the opinion and advice of relevant stakeholders
and role-players.

More Information:

Strategy for Broad-Based Black Economic Empowerment, March 20
http://www.dti.gov.za/bee/bee.htm

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PARLIAMENT TO THE PEOPLE

Building an enduring democracy in South Africa

One of the most important objectives of the New Partnership for Africa's
Development (NEPAD) is good governance in Africa. A critical component of good
governance is an open, democratic and accountable Parliament.

Any review of African parliaments would show that they are not part of a
thriving democracy and only a few of them enjoy national respect and public
trust. Some have not been able to withstand the dictatorial directives of
presidents or executives and few have focused on national development and
prosperity for the people.

Two weeks ago President Mbeki, writing in ANC Today, referred to the excellent
achievements of Botswana. He referred in particular to their success in building
an enduring democracy. Their parliament has played a major role in sustaining
and entrenching democratic practices and institutions. The people of Botswana
regard their Parliament as vital to the realisation of their ideals and
aspirations. They support Parliament and would protect the institution if it
ever came under threat.

Such support is critical to the survival of democracy. The people must see and
believe that Parliament serves their interests.

Elections alone do not build a lasting democracy. Between elections, Parliament
needs to forge a strong relationship with the people its represents. We have
inherited a situation where the links between public participation and the
political process is weak. Forging links with the people is the most important
work that a new Parliament has to undertake in a new democracy.

Public participation requires civic education. As a result the National Council
of Provinces (NCOP) has developed the 'Parliament to the People' programme, a
public-participation programme that brings Parliament closer to the people of
South Africa. The aim is to show the people what we do and to give people the
opportunity of speaking directly to us.

Each year the NCOP holds a formal sitting of the Council in one of our
provinces. The people see Parliament in action and the people participate in
Parliament.

From 9-13 March the NCOP moved to the North West province, where we held
meetings in Taung and Mafikeng.

The week began in Taung with large public hearings involving traditional leaders
and local government representatives. The main speakers in the hearings were
ordinary citizens. They alerted us to the challenges they face and identified
progress on a range of policy areas.

They welcomed Parliament and our programme to bring active democracy to our
communities. They were frank and open in their contributions, critical at the
some-time slow pace of delivery, but able to inform us of promises made and
promises met.

It was clear from what the people said that local government is still trying to
find its feet and that it deserves further support.

At the public meetings Members of Parliament (MPs) met with the people and
engaged in debate. They also served at service desks and played the role of
information officers.

Most visible at these meetings was the positive attitude of the people. Many of
those who stood up and spoke in the meetings confirmed the accuracy of our
national policies and priorities. Pushing back the frontiers of poverty emerged
as the most significant demand from the people.

In Taung the Council held a plenary sitting on two Bills. The public greatly
enjoyed the lively multi-lingual debate on the Bills and there were many
spontaneous comments and gallery discussions. In Mafikeng we held open sessions
with business people, educators, and women's organisations.

As a result of our programme in Taung and Mafikeng, the NCOP has learned the
following:

* Our committees must strengthen efforts to reach out into rural areas to ensure
public participation by all our people, including those who cannot travel to
towns and cities. * Traditional leaders should be encouraged to play a positive
role in promoting democracy and people development. * More information on
Parliament, its role and functions should be made available to our people. *
National departments should provide support strategies to ensure that their
programmes are successfully implemented at provincial level. * A range of
government and civil-society bodies should formulate a campaign to empower
women. This will support the urgent need to promote the achievement of gender
equality in our country.

Naledi Pandor is Chairperson of the National Council of Provinces and a member
of the ANC National Executive Committee.

More Information:
Parliament website
http://www.parliament.gov.za

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